Frontier Oil withdraws IPO plan

MANILA, Philippines - Frontier Oil Corp. has decided to withdraw its plan to list at the Philippine Stock Exchange (PSE).

“Frontier is now focused on exploring an alternative listing possibility on another global stock exchange and as such, wishes to withdraw its plans for a local offering,”  Frontier Oil chief executive officer Kristoffer Fellowes told the stock exchange late Tuesday.

The company had been planning an initial public offering (IPO) since last year but decided to wait for more favorable market conditions.

An industry source said during the waiting period, Frontier saw possible opportunities in another global stock exchange.

Although nothing is final yet, Frontier is also looking at listing in the Australian bourse.

The oil and gas explorer earlier planned to raise P2.2 billion from the IPO for its drilling campaign for Service Contract 52 in Cagayan Valley and Service Contract 50 in Northwest Palawan.

SC 52 is estimated to contain contingent gas resource of as much as 231.91 billion cubic feet.

The Calauit field in SC 50, meanwhile, is estimated to contain 10 million to 13.2 million barrels of oil.

It had planned to offer 883.626 million common shares at an offer price of up to P2.50 per share to be listed and traded on the main board of the PSE.

Fellowes said the company has been scouting for funding opportunities from Canada and the US and other markets to raise funds for its oil and gas projects in the Philippines.

“Frontier has prudently considered and progressed alternative and/or supplemental listing exchanges in Singapore, the Alternative Investment Market in London and more recently, in Canada. The company is of the view that Canada, with its long history of successful oil and gas industry company listings and sophisticated investor base, likely provides the most attractive listing opportunity,” he said.